A significant amount of infrastructure is being built by 2029 to handle the processing, transportation, fractionation and distribution of NGL supply growth, mostly from the Permian Basin. Targa Resources (TRGP) just added a few more logs to the fire.
Permian-related NGL infrastructure under development includes:
- 3.75 Bcf/d of processing plant capacity;
- 1.35 MMb/d of NGL pipeline egress;
- 1.2 MMb/d of fractionation capacity;
- 1.1 MMb/d of LPG export capacity; and
- At least 0.3 MMb/d of ethane export capacity.
The latest expansions come from Targa. On its 4Q24 earnings call, TRGP announced a new Train 12 fractionator (+150 Mb/d), an LPG expansion at Galena Park (+125 Mb/d), and a 100-mile NGL pipe that will extend into the Delaware Basin (highlighted in blue text in the table). All project- and asset-level data is available in East Daley Analytics’ NGL product suite.
Not all Permian producers will contribute equally to filling the new infrastructure. Some producers like ConocoPhillips (COP) and Occidental Petroleum (OXY) are guiding to moderate 3% growth from 2024 to ’25 (avg to avg). Others like Matador Resources (MTDR), Chevron (CVX) and ExxonMobil (XOM) plan to grow at much faster clips Y-o-Y, up 20%, 9.5%, and 7.5%, respectively.
EDA is comparing Permian producer guidance against our NGL forecasts to improve visibility into supply for the rest of 2025 and implications for storage, as reflected in our Ethane and Propane Supply & Demand products. We will update clients shortly on any updates. – Rob Wilson, CFA Tickers: COP, CVX, MTDR, OXY, TRGP, XOM.
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